Last week’s COT report shows that the gold still holds a strong “long” position, but that is only in the short-term period. In the mid/long term a continuation of the rejection of the 250k contracts is likely to happen.
Now what interests us is of course the shorter-term period.
1. If the price doesn’t fall straight away on Monday’s news a new move towards 1800 is expected. And if we see a strong engulfing candle above the area, a possible move to the next monthly critical is most likely to happen. Here a good entry position towards it will be the latest higher highs.
2. A strong rejection from the current monthly critical will mean a move towards the 1700 area.
Strong moves can be expected from the news tomorrow and on Tuesday. High volatility can take place so keep a tight SL and beware of false breakouts.
Now what interests us is of course the shorter-term period.
1. If the price doesn’t fall straight away on Monday’s news a new move towards 1800 is expected. And if we see a strong engulfing candle above the area, a possible move to the next monthly critical is most likely to happen. Here a good entry position towards it will be the latest higher highs.
2. A strong rejection from the current monthly critical will mean a move towards the 1700 area.
Strong moves can be expected from the news tomorrow and on Tuesday. High volatility can take place so keep a tight SL and beware of false breakouts.